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Hi all , my wife and are(age 60&59) are due to move to spain in a few weeks on a non lucrative visa. I have recently received my private pension tax free lump sum and my wife a small inheritance which we will keep in our uk bank for now . We were just wondering if we have to pay tax in spain on our savings starting in 2024 ? I understand I will have to pay tax on my private pension
You don't pay tax on your savings in Spain. You do pay tax on the interest earned on those saving which are declared in your world wide income.
As you are moving in the second half of the year, you will not become tax residents until next year so don't have to file an income tax return until 2025 for income earned in 2024. Income earned this year (2023) will not have to be declared.
The Spanish financial year is January to December and you have to spend more than 183 in Spain to be classed as a tax paying resident.
Ensure you complete an FD9 declaration that you are resident in Spain and send it to HMRC so they will stop taking tax from your private pension in UK and will only be taxed in Spain. You can't do that until you become a fiscal resident and get a tax residency form from the Spanish tax office.
marcliff wrote on Thu Jul 27, 2023 10:26am:
You don't pay tax on your savings in Spain. You do pay tax on the interest earned on those saving which are declared in your world wide income.
As you are moving in the second half of the year, you will not become tax residents until next year so don't have to file an income tax return until 2025 for income earned in 2024. Income earned this year (2023) will not have to be declared....
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The Spanish financial year is January to December and you have to spend more than 183 in Spain to be classed as a tax paying resident.
Ensure you complete an FD9 declaration that you are resident in Spain and send it to HMRC so they will stop taking tax from your private pension in UK and will only be taxed in Spain. You can't do that until you become a fiscal resident and get a tax residency form from the Spanish tax office.
Hi Marcliff, thank you for your quick reply and that has set our minds at rest . We will wait until we have moved over and become residents then we can fill out our FD9 forms and send the to HMRC
Thank you
Gary7563 wrote on Thu Jul 27, 2023 11:11am:
Hi Marcliff, thank you for your quick reply and that has set our minds at rest . We will wait until we have moved over and become residents then we can fill out our FD9 forms and send the to HMRC
Thank you
You have to wait until you have completed your first tax return in June 2025. The Spanish tax authority then issues you a tax resident certificate which accompanies the FD9. Unfortunately, like all of us, you will end up paying tax twice on your pensions until hMRC completes the paperwork but will then issue a refund.
marcliff wrote on Thu Jul 27, 2023 11:31am:
You have to wait until you have completed your first tax return in June 2025. The Spanish tax authority then issues you a tax resident certificate which accompanies the FD9. Unfortunately, like all of us, you will end up paying tax twice on your pensions until hMRC completes the paperwork but wil...
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...l then issue a refund.
Hi Marcliff , ah right I understand now how it works . Regarding paying double tax on my private pension, from next April in the UK I don't think my income is enough ( less than £12500) for it to be taxed by the HMRC so hopefully shouldn't be too bad
Thank you
